© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 10 Marketing Organization, Implementation, and Control

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Structure The basic functions of an organization are to provide: Organizational designs

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Structure Little or no formal organization Transactions are conducted on a case-by- case basis either by the resident expert or with the help of facilitating agents

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Structure International division Centralizes in one entity the total responsibility for international activity With or without separate incorporation

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Structure Concentrates international expertise, information flows concerning foreign market opportunities, and authority over international activities Best serves firms:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Structure Global organizational structures Six basic types of global structures are available:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Structure Product structure Gives worldwide responsibility to business units for marketing of their product lines Provides the ability to balance the functional inputs needed by a product and to react quickly to product-specific problems in the marketplace

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Structure Fragments international expertise within the firm because a central pool of international experience no longer exists Area structure

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Structure Functional structure Works best when both products and customers are relatively few and similar in nature

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Structure Customer structure Mixed structure May occur in a transitionary period after a merger or an acquisition, or because of a unique market characteristics or product lines

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Structure In the long term, coordination and control across such structures become tedious Matrix structure Adopted by multinational organizations for planning, organizing, and controlling interdependent business, critical resources, strategies and geographic regions

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Structure Helps cut through enormous organizational complexities in making business managers, functional managers, and strategy managers cooperate The dual reporting channel easily causes conflict

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Structure Transnational structure Double and conflicting challenge makes the pressures on global operating models more acute

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Implementation Locus of decision making Decentralization: Centralization: Coordinated decentralization: But subsidiaries are free to implement it within the range established in consultation between headquarters and the subsidiaries

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Implementation Factors affecting structure and decision making

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Implementation The human factor in any organization is critical The networked global organization Companies that have adopted the approach have incorporated the following three dimensions into their organizations:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Implementation Effective management of human resource tools to broaden individual perspectives and develop identification with corporate goals Avoids the problems of duplication of effort, inefficiency, and resistance to ideas developed elsewhere Centers of excellence can emerge in three formats:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Implementation Promote global internal cooperation Move intellectual capital within the organization

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Implementation Two-way communication between headquarters and subsidiaries and between subsidiaries themselves

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Control Controls focus on actions to verify and correct actions that differ from established plans Controls are designed to:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Control Bureaucratic/formalized control The elements are:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Control Budgets: Plans: The budget system is used for four main purposes

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Control Cultural control The primary instruments of cultural control are

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Control Exercising control

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Control Factors to be kept in mind while designing a control system: